While the debate over whether independent contractors should be considered full-time employees gains traction, Uber finds itself caught in the eye of a legal storm.
Startups looking to hire big workforces are coming to rely on contractors more and more. However, since they are independent, contractors do not enjoy the benefits given to full-time employees.
On Thursday, July 9, Uber argued in a court filing that the lawsuit filed against it by three enlisted drivers should not be considered a class action suit since Uber drivers are not deemed employees.
Uber, however, is being sued by three drivers who contend that they are in fact employees and entitled to be reimbursed by Uber for expenses such as gas, vehicle maintenance, and the like. The drivers currently have to pay for these themselves. The plaintiffs claim that they were being treated as employees, but when it came to compensation and benefits, they were treated as contractors.
Uber submitted written statements from over 400 of the service's drivers as testimony in opposition to the plaintiffs' claims. These personal statements from Uber drivers in California reveal that the drivers favor the status of an independent contractor over full-time employees. The contractor status grants them the flexibility to work multiple jobs and juggle other tasks.
Two drivers have said in their testimony that in the event the court passes the judgment that the drivers are Uber employees and not contractors, they will be unable to work for other ride-hailing services as a result.
Uber has argued that its contractors have "little or nothing in common" as the manner in which they engage with Uber differs greatly from contractor to contractor. Some have their own transportation companies, whereas others hire subcontractors. Because of these differences, according to Uber, the lawsuit of the three said drivers cannot be taken forward as a single class action suit on behalf of 160,000 other drivers in California.
